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consultancy

A professional practice that gives expert advice within a particular field, esp. business. Providing expert knowledge. Often used when an company needs an outside expert opinion.

Consultant
A consultant (from Latin: consultare "to discuss") is a professional who provides professional or expert advice in a particular area such as:-

What they do????

Functions of Consultancy
Helping a client to identify a problem and defining a suitable intervention to solve it. Implementation support for the intervention. Monitoring and evaluating the intervention and suggesting changes to improve efficacy. Facilitating client learning. Permanently improving organizational effectiveness.

GROWTH OF MANAGEMENT CONSULTING


The industry experienced impressive growth in the 1980s and 1990s, gaining considerable importance in relation to national gross domestic product.(GDP) In 1980 there were only five consulting firms with more than 1,000 consultants worldwide, whereas by the 1990s there were more than thirty firms of this size.). Big Four, accounting firms (PricewaterhouseCoopers; KPMG; Ernst and Young; Deloitte Touch Tohmatsu) had always offered advice in addition to their traditional services, but in the modern trend service providers started focusing on corporate strategy and organization.

Size of the Consultancy sector in India


The development of consultancy capabilities and business is directly proportional to growth in economic and industrial development estimated consultancy business in India engages about 100,000 persons in about 5000 consulting firms. the current size of the consulting industry in India is about Rs. 10,000 crores including exports and is expected to grow at a CAGR of approximate 25% in the next few years.

Few Facts About Indian Consulting Industry


Largest concentration of consultancy organisations is in the four metropolitan cities:
1. 2. 3. 4. Delhi (25.7%) has the highest number of consultancy organisation among four metropolitan cities followed by, Mumbai (25.5%), Chennai (12.1%) and Calcutta (9.1%).

8 Ps of Consultancy Services
Product Price Place Promotion People Process Physical Evidence Productivity or Quality

Key characteristics of pricing in service


Customers perceptions are different for goods & services. Price is a measure of quality of service. Non-monetary cost & pricing:: non monetary cost perceived as time cost, search cost, psychological cost & convenience cost. Difficulty in comparing prices of services.

Pricing Objectives
Survival Revenue maximization. Prestige. Product Quality Leadership.

Place
It should be conveniently located otherwise customers may turn to rival service provider. A channel is the structure of intra company org units and extra company agents and dealers wholesale and retail, through which a service is marketed.( service provider, intermediaries and customers )

Strategies for Effective Promotion


1. Networking 2. Referrals 3. Cold Calling 4. Public Speaking 5. Books, Articles and Newsletters 6. Business publications 7. Direct Mail advertising

Avoid radio and television advertising; they are not only costly but generates the least amount of return

Promotional Strategies for services


Services cant be inventoried Reduce role of intermediaries. Role of service personnel Service delivery location Customer as a co-product.:: chef cooks food in front of customer, as per requirement.

The Extended Ps
People co. invest in people( attracting, training, retaining best talent) Process increase customer satisfaction. Physical Evidence TV commercial, brochures etc. for holiday destination. Productivity or Quality

Network
It depends on the type of service. Through word of mouth. Past performances. Level of expertise.

Types of Consultancy Organisations


Consulting organizations are generally classified as: Management consultancy organizations Engineering consultancy organizations Legal consultancy organizations

Socio Economic consultancy organizations


Financial consultancy organizations

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Interrelationship With Other Services

Health and Benefits Consultants help health benefit plan sponsors better manage spend, maintain the integrity of their core offerings, meet the needs of their varied employee populations and manage the plans impact on business performance and financial results. Investment Consulting Consultants offer investment advice to manage the cost, risk and governance, operations of qualified retirement programs on an advisory, or ongoing management basis. They use their sophisticated modeling tools to help us analyze our situation and help us make informed choices about our future investment strategy. The clients include institutions, public and private companies, trustees and multinationals.

Talent and Organization Consultants also help managing the recruitment, selection, engagement and potential of critical talent, executives and next-generation leaders while minimizing the retention and compliance risk of a global workforce. Retirement Retirement consultants balance the potential and risks of retirement benefit programs; manage adverse outcomes through financial, and operational risk management; and better enable employers to help their workforce prepare for retirement. Communication Consultants use a proven strategic planning process and award-winning communication design to engage, educate and empower targeted audiences to take the actions and change the behaviors that will benefit them as individuals and improve organizational productivity.

Differentiation between Indian and Foreign Firms


Indian Firms Foreign Firms
Indian firms are smaller in size. They have smaller expenditure budget. These firms lack timeliness and quality of work. Lack competitiveness across the globe due to strict foreign currency norms. Hiring of consultants (manpower) globally are constrained. Limited reach.
International firms are larger in size. These operates across countries which give them market to work. They have no budgetary constraints. These firms stress on timeliness and quality of work. These are competitive across the globe due to free currency norms. Hiring of consultants (manpower) globally is not a constraint. Wide reach

To capture the foreign markets four key elements need to be taken care
Market understanding is the key requirement and includes detailed field based studies of the identified sectors in the target countries. Promotion includes delegations / mission to target countries, Tax benefits and identification & strengthening of a nodal agency for promotion of Indian engineering capabilities. Focused marketing includes strategic alliances with local consulting firms, negotiate against trade barriers, credit facility and support creation of world-class infrastructure facilities in the form of Engineering Offshore City which could be an integral part of existing IT Parks. Quality assurance includes recognition of Indian qualifications.

MD SOHRAB KHAN SHAHID AHMAD RAZIQUE KAMAL AZHARI TAHSEEN REZA